Ottawa’s BelAir Networks digs channel south of the border

BelAir Networks, an Ottawa-headquartered provider of mobile wireless broadband mesh networking solutions, has opened a significant indirect channel with TESSCO Technologies Inc. in the U.S. And while municipal Wi-Fi hasn't met expectations, it appears demand for industry-specific wireless mesh applications is on the rise."We just put out a forecast for the market," says Greg Collins, VP of Dell'Oro Group, a market research firm focusing on the networking and telecommunications industries."In 2007 the mesh Wi-Fi market was at US $116 million, and for 2008 we expect it to be at US $135 million. From the public access perspective that business model is a bust, but the overall market continues to grow internationally."The distribution agreement with TESSCO puts BelAir's technology closer to the ground in the U.S. It gives BelAir access to TESSCO's wireless system operators, program managers, contractors, resellers, and a host of organizations in industries such as utility, transportation, enterprise and government.Collin's sees vertical industries like these as being central to growth in the area. "There is rising demand for public sector surveillance and enterprise-specific applications," he says. "And also niche markets in everything from mining, to hospitality, to amusement parks."Channel conflicts might be a worry - BelAir has gone direct in the past, and still has a sales team out there. However, the two companies are insistent that the present business model addresses these concerns.Susan Masek, BelAir Networks' director of channel sales, says the opportunity is too big for BelAir to step on TESSCO's toes."We want to move 100% of our product through the channel. We have some named accounts, but they are outside of this agreement. The reason we've moved to this distribution model with TESSCO is because we can leverage their database and also the ancillary items they carry."The strategy is to find complementary products in the back end, where TESSCO has stock on the shelves. If, for example, a customer is looking for a complete solution that might include video cameras, TESSCO can fulfil the entire order.Scott McClure, TESSCO's product business unit manager for wireless networking, gives a more sober view of the market than Collins - he reports that the first half of 2008 was sluggish, though the order pipeline is strengthening in the latter half - but also argues that wireless mesh is here to stay."We're seeing renewed strength because companies realize they need to be connected and improve service, and do it on a tight budget. Wireless passes the test for business requirements."This is something of a move up for TESSCO, as the adaptability and flexibility of BelAir's options for a variety of scenarios - point-to-point, point-to-multi-point, or multi-point to multi-point - puts it in a different league."It definitely compliments what we have," says McClure. "We have high-end microwave backhaul, for example - but it is at the high end of what we are offering from a product line perspective."It seems one of the central strengths of the agreement is the relationship between McClure and BelAir's Masek. Masek, who is based in the U.S., was hired to develop a channel strategy for BelAir, and spent considerable time working with McClure to iron out any potential conflicts. The deal is structured such that BelAir's sales force is in a supporting role, and is remunerated on any TESSCO sale. The incentive then is to work with TESSCO and support the channel."We'll need to get the two teams allied together," says McClure. "We'll help BelAir scale their business, to bring them new customers and markets. BelAir doesn't want to hire a new sales staff of 200 people. This way if there are sale pitches that require knowledge of specific capabilities, we can fall back on them."

Ottawa’s BelAir Networks digs channel south of the border

News | August 5, 2008

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